By Sheri Kasprzak
New York, March 24 - Cusac Gold Mines Ltd. said it intends to raise C$6 million in a private placement of 11% convertible debentures and flow-through and non flow-through units.
The company plans to issue 1,000 debentures at C$3,750 each.
The 18-month debentures are convertible into common shares at C$0.35 each for the first six months and at C$0.40 each for the remaining six months.
The initial conversion price is a 45.8% premium to the company's C$0.24 closing stock price on March 23, and the final conversion price is a 66% premium to the same closing stock price.
Cusac also intends to raise C$1.5 million from the sale of 5,555,556 flow-through units at C$0.27 each. The unit price is a 12.5% premium to the closing stock price on March 23.
The units consist of one share and one half-share warrant with each whole warrant exercisable at C$0.35 for one year. The strike price is a 13% premium to the March 23 closing stock price.
The remainder of the deal will be funded through the sale of 3,125,000 non flow-through units at C$0.24 each. The non flow-through units are priced on par with the March 23 closing stock price.
Those units include one share and one warrant with each warrant exercisable at C$0.35 each for one year.
M Partners Inc. is the placement agent.
Proceeds from the debentures will be used to resume gold production on the company's Table Mountain gold mine in northern British Columbia. The proceeds from the flow-through units will be used for exploration on the company's Taurus II open-pit target near the Table Mountain property, and the proceeds from the common units will be used for working capital.
Located in Vancouver, B.C., Cusac is a gold exploration company.
Convertibles
| Issuer: | Cusac Gold Mines Ltd.
|
| Issue: | Convertible debentures
|
| Amount: | C$3.75 million
|
| Maturity: | 18 months
|
| Coupon: | 11%
|
| Price: | Par
|
| Yield: | 11%
|
| Conversion price: | C$0.35 for the first six months; C$0.40 for the final six months
|
| Warrants: | No
|
| Placement agent: | M Partners Inc.
|
| Pricing date: | March 24
|
| Stock symbol: | Toronto: CQC
|
| Stock price: | C$0.24 at close March 23
|
|
|
| First units offering
|
| Issuer: | Cusac Gold Mines Ltd.
|
| Issue: | Units of one flow-through share and one half-share warrant
|
| Amount: | C$1.5 million
|
| Units: | 5,555,556
|
| Price: | C$0.27
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.35
|
| Placement agent: | M Partners Inc.
|
| Pricing date: | March 24
|
| Stock symbol: | Toronto: CQC
|
| Stock price: | C$0.24 at close March 23
|
|
|
| Second units offering
|
| Issuer: | Cusac Gold Mines Ltd.
|
| Issue: | Units of one non flow-through share and one warrant
|
| Amount: | C$750,000
|
| Units: | 3,125,000
|
| Price: | C$0.24
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | One year
|
| Warrant strike price: | C$0.35
|
| Placement agent: | M Partners Inc.
|
| Pricing date: | March 24
|
| Stock symbol: | Toronto: CQC
|
| Stock price: | C$0.24 at close March 23
|
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